AT&T: iPhone 3GS flying off shelves now that it's "free"

AT&T is seeing unprecedented interest for the two year old iPhone 3GS after it announced massive price cuts, allowing first timers or existing customers to walk away with the device for free on contract.

The company's wireless head Ralph de la Vega said during a call discussing summer results. There was still "tremendous demand" for the now two-year-old phone to the point where inventory was being sold out. It was also the phone of choice for more new customers than any non-iPhone device.

With around two thirds of customers already using a smartphone, de la Vega also sees this as a launch pad for the future of the company to put a smartphone in the hands of all their customers, he estimates that it will take two to three years for that to happen, calling it a "huge opportunity," he said.

With the recent launch of the 4S and the now-free 3GS pricing, AT&T has seen its best smartphone sales ever in the fall, de la Vega added.

He also hinted at "more tiered data options" to cater to what customers wanted, but emphasised that it would be more beneficial to the high end than the low, as the company had just switched on its LTE 4G network and plans to add LTE smartphones soon.

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